United Snack Company sells 60-pound bags of peanuts to university dormitories for $52 a bag. The fixed costs of this operation are $474,280, while the variable costs of peanuts are $.31 per pound.

a.	What is the break-even point in bags? (Round your answer to the nearest whole number.)

Break-even point

bags

b.	Calculate the profit or loss (EBIT) on 7,000 bags and on 20,000 bags. (Input all amounts as positive values. Round your answers to the nearest whole number.)

Bags	Profit/Loss	Amount
7,000

$
20,000

$

c.	What is the degree of operating leverage at 19,000 bags and at 24,000 bags? (Round your answers to 2 decimal places.)

Bags	Degree of Operating Leverage
19,000
24,000

d.	If United Snack Company has an annual interest expense of $31,000, calculate the degree of financial leverage at both 19,000 and 24,000 bags. (Round your answers to 2 decimal places.)

Bags	Degree of Financial Leverage
19,000
24,000

e.	What is the degree of combined leverage at both a sales level of 19,000 bags and 24,000 bags? (Round your answers to 2 decimal places.)

Bags	Degree of Combined Leverage
19,000
24,000